Electricity Price Disputes on the Rise: What Consumers Need to Know Before Signing Fixed-Term Contracts

In recent months, the Consumer Disputes Board has been busy mediating cases where consumers have signed fixed-term electricity contracts at exorbitant prices. The board has found that some of these prices were unreasonable in certain cases. As a result, the board has issued guidelines for price mediation of fixed-term electricity contracts, stating that consumers have entered into contracts at high prices. The board estimates that there are tens of thousands of similar situations, with thousands of people receiving payment default notices for unpaid electricity bills.

The Consumer Disputes Board has set limits to what is considered unreasonable in electricity contracts. According to the board, the fixed price of a contract can be considered unreasonable if it is more than 15% higher and more than 150 euros higher than the average price of similar contracts during the contract period. Cases resolved by the board have shown that consumers have paid significantly higher prices for their electricity compared to similar contracts offered later during the validity of the contracts.

Despite unexpected price developments due to external factors such as Russia’s war with Ukraine, electricity sellers should still assess the development of electricity prices in advance. Consumers who have made expensive contracts continue to pay high prices even after mediation. The board emphasizes that consumers who have been through resolved cases should contact the consumer ombudsman for further resolution, potentially leading to a Supreme Court decision that may apply to all fixed-price electricity contracts signed in the fall of 2022.

The Consumer Disputes Board believes that it is essential for consumers to understand their rights when it comes to signing fixed-term electricity contracts. They urge consumers not to sign any contract without fully understanding its terms and conditions, including pricing and payment schedules.

In conclusion, while unexpected price developments due to external factors such as Russia’s war with Ukraine can impact fixed-price electricity contracts, it is crucial for consumers and electricity sellers alike to assess and plan ahead when it comes to pricing and payment schedules.